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This is despite the fact that a large amount of businesses fail within the first two years.
Ideally one would like to purchase a business for less than it takes to create one – this is not always easy and can take as much effort as the former.
So just how does one take the choice of whether or not to uptake the business opportunity?
The decision can be helped by the work taken to look at the factors affecting the eventual outcome.
What is commonly misunderstood is that businesses have their life-cycles –if you are lucky enough to buy a business when its life-cycle is still enhanced by its customer loyalty then it is fortunate but if one is basing their future on this then it can be touch-and-go.
So what should one look at when purchasing a business franchise?
Establishing a customer base
Internal systems and procedures
Market awareness and credibility
Premises and cash-flow
Staffing
Franchising is such a popular industry due to the ability to focus on the first three points.
It must be noted that, however, as with any business, it essential to establish a customer base.
Also, it is important to ask oneself whether or not the customers will stay happy in the long-term; this is of paramount importance as it is the key, obviously, to the longevity of the business.
Some schools of thought believe that it is a good idea to have a "work-out" clause included- this involves the owner taking part in the business for a period so that the owner's skills may be put to the business in its early stages.
What may also be apparent to existing franchisees is the fact that the aforementioned points seem ridiculously transparent but to the unaware may be at first un-noticed.
Again, what may seem apparently clarent to pre-existing franchisees is the need to do the customer approach-whichever business one is involved in; it requires customer contact and this can be the making or braking of a business.
So in deciding to take on a franchise opportunity the potential franchisee must ask almost the same number of questions as that of a person looking to begin a brand new business-what is the integrity behind the business? What are its potential advantages/disadvantages? What are the staff needed? Are there any premises needed-if so how, much area? What logistics are required? Internal systems and staffing? Rent and rates? The list goes on.
Financing of course takes pride of place as this is one of the major reasons we strive to create anything in the world of business.
In my opinion it is essential to ensure that sufficient funds are available to take care of the bad times, and with previous experience it is recommended to expect some problems with any and every opportunity.
However, this being said, the fruits of pursuing this course are plenty otherwise people would not go into these ventures.
The question thus prevails-to buy or not to buy a business franchise?